Japan's 2025 tax reform proposal says "review of taxation of virtual currencies under consideration"

The tax system reform outline for fiscal year 2025 (Reiwa 7) was finalized at the plenary meeting of the tax system committee and tax system research committee of the Liberal Democratic Party of Japan and Komeito Party. Takuya Hirai, the first digital minister of the Liberal Democratic Party, visited the FSA and submitted "an urgent proposal to make crypto assets an asset contributing to the national economy" to the FSA. The following three points were identified as the main points in the proposal:
The profits and losses of cryptoasset transactions are subject to separate taxation.
Develop a regulatory framework related to cryptoassets.
Strive to make cyber security an asset that contributes to the national economy;
Hirai MP said that he has received the general approval of Minister Kato, so it is expected that the process of specific system design will be accelerated. This time, the tax related to crypto asset transactions will be included in the LDP's tax reform outline, paving the way for specific system reforms such as future tax rate adjustments, the establishment of profit and loss summary rules, and tax changes. Will show. Therefore, the Financial Services Agency and the Internal Revenue Service will start specific system design, and businesses such as crypto asset (virtual currency) exchanges will also be able to make necessary preparations.